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A List Of The Banks Providing Best Switching Cashback, Interest, And Free Overdraft Offers


Finance management is very important in our lives. Everyone should know the art of managing their finances. In the current situation in the world where there is a financial crunch in the global market, the degradation in the world GDP, and the increasing unemployment, we must manage our finances very well and effectively.

Finance management does not mean saving as much money as one can but, to save wisely, to make wise investments. Because, the forthcoming days, might bring up a never-ending plight! The world might face economic depression.

To start with you need to make proper investments. For this, you need to research and find out the list of banks that has the best overall offers. There might various banks providing various lucrative offers but you cannot invest in all of them.

So, you need to sit down, note down the diverse offers provided by the diverse banks, and then finally select one bank that provides all the offers and rates that are affordable in your case.

Below, we shall discuss the various offers that can provide you some financial gain and the best banks to invest in. Based on this study, you can finally come up with a decision as to which bank to invest in:

Banks to look for to avail switching offers

Switching Bonus is a new tactic by the banks to attract potential customers to invest in their bank or at least open up an account. In a switching bonus offer, you earn some extra money if you switch your bank. This way, you can have a boost in your bank balance and some banks display other offers too as interest-free overdraft offers too.

With the ongoing pandemic, all the juicy offers have been pulled back by the banks but still, some banks have again presented them. The switching bonus scheme is the most popular one that is done by most banks with one aim to increase customer database.

In August 2020 banks like Halifax, Metro Bank, RBS, HSBC, and Lloyds have come up with this offer. Halifax was the first one to take this step. But some things need to be checked while you are switching your banks. Make sure that the extra money or incentive that you are being offered for switching banks is worth value or the amount fulfills your financial requirements or else, making such a big decision could be a failure. Now, let us see the ways how you can earn some easy money:

Switch to Halifax Reward Account

HSBC – HSBC bank is providing an extra of £125 to the customers who are switching their advance account by using the Current Account Switch facility. And this should be done within a month of opening the new account. If you are interested in this offer, then make sure that you hurry and take up this offer or the bank may pull out this offer anytime. If you are lucky and eligible, then you shall get £125. But for this, you have to move a minimum of two standing offers or Direct Debits.

And then you have the option to pay a minimum of £1,750 per month or £10,500 for six months. Though you can get access to 2.75% Regular Saver your account, which is an advance account might not suit or bear the fluctuations that may come in your account. For availing this, you would have to have an overdraft that would have a minimum of £1,000.

But, the main thing that you would need to take notice that you don’t have a prior or old HSBC account. Then the all discussed things won’t work. And if you have an income of a minimum of £75,000 per year and have life insurance for yourself, then you can switch to a premium account and get £125.

Switch to HSBC Current Account

Another bank is Lloyds. According to this bank’s plan, you can get £100 if you switch your account to Club Lloyds or become a platinum account member. But you will have to make the switch in your account by using the Current Account Switch Service. Another thing you can do is you can upgrade your existing Lloyds Bank account that you have and qualify it.

Doing so, you only need to pay a minimum of £1,500 per month and save £3 each month which was your monthly fee. The same with Club Lloyds Platinum Account. This account is also offering you and your family travel insurance, insurance for your mobile phone, etc. But, you must check if it covers anything related to COVID-19.

Switch to Club Lloyds Current Account

There are two more banks with switching bonus offers. Metro Bank and RBS, Metro Bank’s offer is a bit different. According to this bank’s plan, if you are an existing customer of the bank and if you can refer your friend to switch his/her bank to Metro bank, then you will get £50 for each referral.

People may make five referrals. But, take note that when your friend opens up a new account in Metro Bank in your referral, he/she should deposit £500 minimum in the following two months. He/she shall also have to make 10 purchases using their debit card.

Switch to an RBS Rewards Current Account

Then comes RBS – RBS has decided to pay a sum of £100 to all the new customers who are willing to open a select or a reward account. This is a limited time offer but if the demand gets too high then the offer may close early too.

There is no charge in using the select account but to use the reward account one has to spend £2 per month.

In RBS, there is a chance for the existing customers too but for that, they would have to switch to reward, silver, platinum, or black account. Keeping note of the current situation, you can also open accounts online.

Switch to an RBS Rewards Current Account

To look for the banks that offer a high-interest rate on the savings account

The FIXED DEPOSITS are made by the people who plan for retirement or who plan for the future education of their children. Recently, all the banks have reduced their interest in the FDs and increased the interest in savings accounts.

So, an increase in the rate of interest in the savings accounts could benefit many people and this also provides better liquidity. Nowadays, the various public and private sector banks are providing interests between 2.5-4 % per annum in the savings accounts of the customers.

But there are also a few banks that offer up to 7.15 % per annum. These are mostly the private sector and small finance banks. In the current situation, the banks are coming up with easier steps to open bank accounts. Now bank accounts can also be opened while sitting at home. Some banks have processed the system of opening up of accounts by using video KYC. Contactless account opening should be practiced to prevent COVID-19.

But, before opening up a savings account, you must take note of a few things. Saving accounts with a higher rate of interest is a better way to increase your basis funds while you keep maintaining high liquidity and also not taking any risks.

But the customers should check the fine print before he/she applies for a savings bank account. He/she should be clear about the basic things like minimum balance and a minimum income. They should also avail of the offer facilities like an ATM card, internet or mobile banking, branch network, etc.

Best Bank accounts providing arranged overdrafts

Overdrafts are generally the credits that help us to borrow more money than the amount we have in our account. In earlier times, there were only two types of overdrafts. These two overdrafts had a different interest rate and fees. They were called Arranged overdrafts and unarranged overdrafts.

Now, the banks that have cheaper or free overdrafts, have decided to change their structure under the (FCA) rules from April 2020. Check out the banks with favorable overdraft systems:

  • Starling Bank is offering a 15% EAR overdraft. This means that given your credit rating is impressive then Mobile-only bank Starling will offer the cheapest found overdraft given that you are having a decent score.
  • First Direct and M&S Bank are offering an impressive 0% overdraft which is up to £250. Both of these banks are providing interest-free overdrafts of £250 and that too on the current accounts of the customers. But, if the customer is borrowing a sum that is more than £250, then the customer has to pay 39.9% EAR. So, it is seen that the cost of borrowing has exceeded a double for some of the customers.
  • Nationwide FlexDirect – This bank is too offering 0% for a year. In this account, the customers are rewarded for being in credit.

So, above are the lists of the pointers that need to be checked to ensure secure financial planning for the future. Hope this read would help the readers and clear their doubts.

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